Alibaba IPO Poses Challenge for Bankers

8/11/2014 4:03PM

As Alibaba nears its initial public offering, the company and its bankers are facing some potential challenges in trying to put together what could be the biggest stock sale of all time. WSJ’s Dennis Berman joins Sara Murray on the News Hub.

This transcript has been automatically generated and may not be 100% accurate.

... I ... the ... Alibaba could be a case IPO in history but the bank is that the challenge is how to keep the shares up when they start training ... welcomes your Monday afternoon news have I'm Sara Mary ... gets ... inside another unique hurdles Alibaba faces as they get ready to go public is Daddy SJ fitness editor Dennis Berman ... this is ... sort of math Tentsile twenty billion dollar deal here this is a big deal why is it so important after the IPO to make sure that those numbers just keep going up the function of the bankers keep the stock price stable and it's not stable certainly moving higher ... and you do that by keeping them and I it's possible for when we actually IPO the shares of ... the expectation is that for twenty billion dollar deal you might be demand for times that amount ... to keep that this has been forward so that's just large numbers how are you create something like that in in in terms of ... how much investors I have to pony up how many investors including mold to keep those numbers going on with the bankers are discussing in this sad story and it's going to and Comrie in the newspaper they can understand what ... is they're saying that they won a few investors are a number of investors it can buy blocks of a billion dollars or more of this IPO and ... he obviously have companies like Eon who are ... who are already in it's it's it's from a flock ... of black stock investors outlets opera second about the unique challenges of Alibaba faces it's a Chinese company It's Incorporated in the Cayman Islands It's been a lift in the last ... why does that make this whole thing didn't work so well you know by the standards of the number of index funds these companies have to be U S companies and Alibaba does not fit that bill even though its listing on the U S exchange so that means that it's ... going to be excluded from all the maintenance ... and done ... because of that index funds which covers a huge portion of the overall market simply can not by Alibaba so that promotes a large chunk of the overall stock market from the ... opportunity of on about ... how much teasing companies and not a single public review once you're shares continue to rise ... how would she think of these ruling party insists before any sign that the if the stock crash after their IPO in all the negative publicity the Kindle and play can say that is the press was somewhat of a ... technical area did speak to the fundamentals of the stock and given where Facebook stock is to they say it's a well ... all's well that ends of the science of today ... I think for Alibaba the opportunity to combine the two hottest things in the world today China along ... the Internet to ... it is no doubt about its pre robust opportunities the question is at what price and how much interest to